News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
EUR/USD
Bullish
Oil - US Crude
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Wall Street
Bullish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Gold
Mixed
GBP/USD
Bullish
USD/JPY
Mixed
More View more
Real Time News
  • Technical analysis of charts aims to identify patterns and market trends by utilizing differing forms of technical chart types and other chart functions. Learn about the top three technical analysis tools here: https://t.co/KDjIjLdTSk https://t.co/CHE6IOq3K5
  • The ISM manufacturing index plays an important role in forex trading, with ISM data influencing currency prices globally. Learn about the importance of the ISM manufacturing index here: https://t.co/Xr3xtoFpZy https://t.co/Agl1q6EQyu
  • Take a closer look visually at the most influential global importers and exporters here: https://t.co/G58J1dg6y3 https://t.co/UmubxiDXGc
  • Trading bias allows traders to make informative decisions when dealing in the market. This relates to both novice and experienced traders alike. Start learning how you may be able to make more informed decisions here: https://t.co/rz7fqhRoMG https://t.co/e4G1gTGhex
  • Greed is a natural human emotion that affects individuals to varying degrees. Unfortunately, when viewed in the context of trading, greed has proven to be a hindrance more often than it has assisted traders. Learn how to control greed in trading here: https://t.co/kODPAfJE79 https://t.co/pS48NIuwqX
  • Forex liquidity makes it easy for traders to sell and buy currencies without delay, and also creates tight spreads for favorable quotes. Low costs and large scope to various markets make it the most frequently traded market in the world. Learn more here: https://t.co/arxYmtQeUn https://t.co/gFVVZTGbe1
  • Forex quotes reflect the price of different currencies at any point in time. Since a trader’s profit or loss is determined by movements in price, it is essential to develop a sound understanding of how to read currency pairs. Learn how to read quotes here: https://t.co/CNtqrKWDBY https://t.co/nHXiNJhLes
  • A currency carry trade involves borrowing a low-yielding currency in order to buy a higher yielding currency in an attempt to profit from the interest rate differential. Find out if the carry trade suits your trading style here: https://t.co/7t4BzmLg8w https://t.co/h0TmJcZeqr
  • $USDCAD sold off aggressively last week, putting it into position to test the important 2017 low; trading bias is neutral to bearish. Get your market update from @PaulRobinsonFX here: https://t.co/sphxUAW9TB https://t.co/ZhsTeJOOM8
  • Get your snapshot update of the of top level exchanges and key index performance from around the globe here: https://t.co/d8Re5anlG5 https://t.co/qP96xmgDVn
Bitcoin Price Outlook: Will Support At $10,000 Stifle BTC/USD Sellers?

Bitcoin Price Outlook: Will Support At $10,000 Stifle BTC/USD Sellers?

Daniel Moss, Analyst

Bitcoin, BTC/USD, US-China Tensions, Average Inflation Targeting, Cryptocurrencies – Talking Points:

  • Extraordinary fiscal and monetary stimulus measures have served to underpin anti-fiat assets.
  • Bitcoin’s recent 26% retreat from the yearly high may prove to be a short-term pullback if key chart support holds.
  • Topside Symmetrical Triangle break hints at further gains for BTC/USD.

The provision of extraordinary fiscal and monetary stimulus measures in response to the novel coronavirus pandemic has served to underpin anti-fiat assets, with the price of Bitcoin surging over 212% from the yearly low (4000) to fall just shy of key resistance at the 2019 high (13764).

However, a resurgence of risk-aversion in recent days, on the back of escalating US-China tensions and worrisome vaccine news, has notably weighed on the popular cryptocurrency and ignited a rather significant retreat from its highest levels since July 2019 (12490).

AstraZeneca, one of the frontrunners in the race to find an effective Covid-19 vaccine, suspended “Phase 3” trials temporarily after a “standard review process triggered a pause to vaccination to allow review of safety data”.

Nevertheless, with the Federal Reserve’s adoption of average inflation targeting (AIT) and Congress continuing to mull the provision of an additional fiscal stimulus package to build “on what worked in the CARES Act”, the fundamental backdrop driving the price of Bitcoin higher looks set to endure.

To that end, the recent 26% decline from the yearly high could prove to be nothing more than a short-term pullback, with psychological support at the $10,000 level potentially providing a platform for price to resume its primary uptrend.

Bitcoin (BTC/USD) Weekly Chart – Symmetrical Triangle Break Could Invigorate Bulls

Bitcoin Price Outlook: Will Support At $10,000 Stifle BTC/USD Sellers?

Bitcoin (BTC/USD) weekly chart created using TradingView

From a technical perspective, Bitcoin’s 4-week pullback from the yearly high set in mid-August (12490) may have validated the topside break of the Symmetrical Triangle pattern carved out over the last three years, if key support at the February high weekly close (9926.8) remains intact.

Although the RSI has markedly dipped lower in recent weeks it has continued to travel above its neutral midpoint, which could be indicative of fading bearish momentum and possibly encourage would-be buyers if price closes the week above the psychologically pivotal $10,000 level.

However, a bearish cross-over on the MACD indicator could inspire selling pressure if BTC collapses back below confluent support at the 2017 downtrend and February HWC (9926.8), potentially carving a path back towards the trend-defining 50-week moving average (8790).

Having said that, the path of least resistance looks to be higher should BTC remain constructively perched above key psychological support, with a weekly close back above the $12,000 level probably needed to signal a resumption of the primary uptrend.

Bitcoin (BTC/USD) Daily Chart – Psychological Support Under Pressure

Bitcoin Price Outlook: Will Support At $10,000 Stifle BTC/USD Sellers?

Bitcoin (BTC/USD) daily chart created using TradingView

Zooming into the daily chart unveils a rather uncertain near-term outlook however, as price carves out a possible Bear Flag pattern atop pivotal psychological support and the ‘faster’ 21-day moving average begins to cross below its ‘slower’ 50-period counterpart.

A daily close below flag support and the midpoint of the 2017 downtrend could validate the bearish continuation pattern, with the implied measured move suggesting that BTC/USD could slice through the sentiment-defining 200-DMA (9087) to test the May low (8101).

That being said, bearish RSI divergence indicates that the 3-week slide from the August high (12490) may be running out steam.

Therefore, a continuation of the primary uptrend looks in the offing if buyers can successfully overcome resistance at the September 4 swing-high (10644).

A daily close above the August low daily close (11053.8) probably generating an impulsive surge to retest the yearly high (12490).

-- Written by Daniel Moss, Analyst for DailyFX

Follow me on Twitter @DanielGMoss

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES